Founded in 2008, California-based AppDynamics was started by Jyoti Bansal, an IIT Delhi graduate. It has around 600 employees and 1,600 enterprise customers.

The solutions it would provide for Apple Watch would include real-time monitoring and analytics support for WatchKit, an extension that controls the smart wearable device's user interface and responses to user interactions.

AppDynamics did not disclose financial details of the deal. AppDynamics also provides solutions for the US-based firm's iconic iPhone.

The wearables market is projected to grow quickly and the need to monitor and manage the apps and huge variety of data on these devices has reached a critical point.

Research firm Statista projects the wearables sales to grow to more than USD 7 billion this year, with an annual growth of about USD 1.5 billion through 2018.

Strategy Analytics has projected Apple Watch sales of 15 million units in 2015, while IDC expects compound annual growth of nearly 80 percent for wearables from 2014 through 2018.